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Description of IEF Programs |
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Click here to
view the Guide to CME Group Collateral Management Programs
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IEF2
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- IEF2 began in July, 2001.
- IEF2 is a direct investment in any of CME’s 20 approved institutional classes of Money Market
Mutual Funds.
- CME has established “CME Shareholder Servicing LLC” to support the processing of payments and
orders.
- There is a 3% CME haircut and a 2% regulatory haircut on IEF2 investments.
- There is a diversification requirement associated with all investments over $100 million.
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IEF3
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- IEF3 is a specialized collateral program that permits CME clearing firms to pledge Reg. 1.25
collateral that CME does not accept directly.
- CME has partnered with The Bank of New York (BNY) and JP Morgan (JPM) to support IEF3.
- Clearing firms are debited cash in the morning and substitute CME approved, Reg.1.25 collateral
in the afternoon.
- The collateral is moved into a tri-party account, controlled by CME, at either BNY or JPM.
- The deal unwinds on the morning of the next business day and begins again.
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IEF4
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- IEF4 is also a specialized collateral program that permits CME clearing firms to pledge Reg.
1.25 collateral that CME does not accept directly.
- CME has partnered with BNY and JPM to support IEF4.
- IEF4 is a “term” pledge of securities with the “term” defined by the clearing member.
- Clearing firms transfer securities into a tri-party account, controlled by CME at either JPM or
BNY.
- Substitutions may occur during the business day as long as the “deal” amount is not
violated.
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IEF5
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